[on-premise machines that use loose tobacco and cigarette paper or tubes to produce cigarettes] - Compliance Alert

              Compliance Problem
As consumers are seeking to reduce the cost of cigarettes, businesses are acquiring on-premise machines that use loose tobacco and cigarette paper or tubes to produce cigarettes. There are numerous laws that must be followed.
Solution
There are significant requirements for a retailer who owns, leases or operates on-premise cigarette production equipment, namely;
1 — Obtaining both cigarette manufacturer and cigarette distributor licenses from the Department of Revenue.
2 — Assuring that all cigarette packages have the appropriate tax stamps.
3 — Meeting state and federal labeling requirements.
4 — Obtaining certification from the Illinois Attorney General of compliance with the Master Settlement Agreement.
5 — Obtaining certification from the Illinois State Fire Marshall of compliance with the Illinois Cigarette Fire Safety Standards Act.
Background
There are substantial tax and regulatory requirements imposed on cigarettes that are not avoided by utilizing on-premise production equipment.
tax.illinois.gov
1 800 732-8866
217 782-3336
TDD 1 800 544-5304
Compliance Alert
November 2010
CA-2011-06 front (N-10/10)